Importance of Having a Quality AuditIf your employer is a government, not-for-profit organization or for-profit organization, you already know about the reliance that the public and other stakeholders place on your organization and its activities, particularly if you receive governmental funding or participate in federal programs. If you are also responsible for procuring audit services for your organization, you have a vital fiduciary responsibility to ensure that your audit is of the highest quality. Independent audits of organizations like yours, including your financial statement and compliance audits (also commonly referred to as Yellow Book audits if performed under Government Auditing Standards and single audits when performed under Office of Management and Budget Circular A-133), are an important accountability mechanism. These audits provide a form of assurance to your management as well as regulators, taxpayers and donors that your entity is in compliance with certain laws and regulations governing the assistance you receive or programs in which you participate. Quality financial statement and compliance audits can help you:

Fulfill your fiduciary responsibility;

Obtain assurance related to the financial integrity of funded programs;

Identify possible non-compliance and other issues early to avoid interruption of current funding;

Lower the risk of future non-compliance;

Build goodwill among taxpayers, donors and other key stakeholders; and

Strengthen your ability to secure additional funding in the future.

Auditee Factors Affecting QualityTaking the following factors in account collectively when selecting an independent auditor will contribute to receiving a quality audit:

Demonstration of the audit organization’s qualifications in response to your request for proposal;

Experienced, qualified staff with appropriate technical abilities, particularly with Yellow Book and single audits if applicable to your audit engagement;

Extent of the audit organization’s practice with organizations like yours (for example, governments or not-for-profits);